No Medical Life Insurance Canada

Understanding No Medical Life Insurance

No Medical Life Insurance is becoming an increasingly popular life insurance product in Canada. Why? Mainly because of how quick and easy it is to get coverage. Additionally, the cost of no medical life insurance is becoming much more affordable thanks to increased competition. Primarily, however, no medical life insurance is ideal for those who have past or current medical conditions that disqualify them from fully underwritten life insurance policies (with health questionnaire, medical examination, etc.).

Most traditional life insurance policies require the applicant to complete an in-depth health questionnaire and medical examination (which includes blood and urine samples). This can be time-consuming, but many Canadians still choose this route because it affords them access to the most affordable life insurance policy rates.

In the past couple of years, however, no medical life insurance has become much more common, especially in light of COVID-19, which delayed or created challenges for in-person medical exams. As a direct result of the pandemic, many life insurance companies in Canada updated their application requirements to facilitate life insurance approval without extensive medical examinations.

Read on for more information about no medical life insurance in Canada, or get in touch with us directly for help finding the right policy for your needs.

Benefits of No Medical Life Insurance

Drawbacks of No Medical Life Insurance

Frequently Asked Questions

What is No Medical Life Insurance?

No medical life insurance is a type of life insurance that Canadians can purchase without having to complete a medical exam. Medical exams involve an in-depth health questionnaire as well as a nurse coming to your home to check your height, weight and blood pressure, as well as collect blood and urine samples. Some find this process tedious and intrusive, opting instead for no medical life insurance.

The cost for a no medical life insurance policy is typically higher than regular life insurance policies. This is because the life insurance companies have less information to evaluate your health, which poses a higher risk to them. In general, most people who are healthy apply for fully underwritten life insurance policies (with medical exam) because they come with lower rates and better policy options.

Who Buys No Medical Life Insurance?

Not so long ago, no medical life insurance was only available to those who were very hard to insure because of health issues. Many policies would have a two-year “waiting period” during which the life insurance company would not pay out in the event of death. While these types of policies do still exist, it is now possible to get coverage of up to $500,000 from the day the policy starts. This has made no medical life insurance policies suitable for a broader number of people, including:

• People who do not want to complete a medical exam.
• People who are willing to pay a slightly higher premium to have a policy that is issued quickly with no underwriting delays.
• People who have health problems who are harder to insure. Examples are heart issues, past diagnosis of cancer, diabetes, obesity, etc.
• People who have applied for a policy that required a medical examination and were declined because of their health or received a rating (increase in cost due to being higher risk to the insurance company).
• People who participate in hazardous sports, activities or have a dangerous occupation (e.g. skydiving, pilots, motorcycle racing, car racing, deep sea scuba-diving, etc.)

At the end of the day, there are a multitude of available options for life insurance. We recommend that you speak with one of our licensed agents to determine which route is best for you and your family.

What No Medical Policy Types Are Available?

There are two main types of life insurance available in Canada: term life insurance and permanent life insurance. These two types of policies are both available with no medical examination. There are also different policy options available within term and permanent policies, including guarantee issue policies, simplified issue policies, deferred issue policies and even fully underwritten policies. 

Guaranteed Issue Policies: these policies require no medical examination and virtually no medical questions. These policies have reduced benefits and increased premiums compared to other available products. Guaranteed issue life insurance is appropriate for those who are unable to qualify for simplified issue policies. 

Simplified Issue Policies: these policies require no medical examination but require a series of broad medical questions. Typically you must be answer all of the questions “no” in order to qualify. These policies have higher premiums than a fully underwritten policy and may have reduced benefits.

Deferred Issue Policies: these policies require no medical examination and very few medical questions. These policies have premiums that fall between Simplified Issue and Guaranteed Issue and are designed for those with more severe current or past medical issues. 

Fully Underwritten Policies: as no medical life insurance becomes increasingly competitive, there are a growing number of options for fully underwritten policies without a medical exam. This means that people can obtain greater coverage than is typical for no medical policies (up to $1 million) at competitive premium rates. To qualify you need to be under the age of 50 and in good health. You must also complete a health questionnaire.

 

What Factors Affect Pricing of No Medical Life Insurance

A number of different factors affect the pricing of no medical life insurance. First, the type of no medical life insurance policy that you qualify for will have a large impact on the pricing. Guaranteed issue policies have the highest premiums and the lowest amount of benefits. Deferred issue costs less than guaranteed issue and provides more benefits. Simplified issue is the highest quality no medical life insurance policy available and also provides the lowest premiums

Other factors like gender, smoking status and coverage amount will also influence premium rates you are offered. That’s not to mention the fact that different life insurance providers have varying rates. For that reason, it is helpful to speak with an experienced advisor to help determine which policy is best for you.

How Much Coverage is Available?

Guaranteed Issue No Medical Life Insurance – Maximum of $50,000

Deferred Life No Medical Life Insurance – Maximum of $350,000

Simplified Issue No Medical Life Insurance – Maximum of $500,000

Fully Underwritten Life Insurance (Medical Required) – No Maximum

What Companies Offer No Medical Life Insurance?

There are a number of life insurance companies in Canada that offer no medical life insurance. Below are some of the top providers of no medical life insurance in Canada. Get in touch with one of our life insurance brokers for more information and custom quotes.

• Manulife
• BMO Life
• Equitable Life
• RBC Life
• Family Compass
• CAA
• Canada Protection Plan
• Industrial Alliance
• Assumption Life
• Edge Benefits
• Foresters
• Wawanesa Life
• Gerber Life
• Desjardins
• PlanDirect
• Hunter McCorquodale
• La Capitale
• Order of United Commercial Travellers (UCT)
• Specialty Life

Getting Started with No Medical Life Insurance

Still not sure which is the best no medical life insurance policy for you? Don’t worry, we’re here to help.

First, head over to our life insurance quote page, where you can find out more about what type of no medical life insurance coverage is right for you and get access to instant policy quotes online.

For more in depth support, get in touch with one of our expert life insurance agents, who can help you find the right life insurance policy from one of Canada’s most trusted insurance providers.